Careful consumption dampens retail price increase

The price increase of agricultural raw materials increased retail prices. According to the datas of the Central Statistical Office (KSH); the average consumer price of foods incresed by 8.6 percent, with tobacco and spirits increased by 6.3 percent, compared to the previous March.

The data shows that the producer price of agricultural raw materials dramatically increased from the beginning of the year, by comparison, manufacturing transfer rates increased much moderately and even more modest increase occurred in retail prices. This can be explained by the fact that the domestic costumers are extremely cautious and cut back their spendings for the smallest rise in prices and despite the spectacular rise in commodity prices retail sales reduce – reports Népszabadság Online.